Innovative Food Holdings Inc (IVFH)

[Dickmo]

It is far from absurd if you assume, as I do, that the company has the ability to be far more profitable than it is. It is also not absurd if you think management will not take some action given that the stock sells for 5 times operating earnings, fully diluted. Clearly, they have shown no interest in doing a competent IR job. One has to ask why?

Do not confuse the $2 million reported earnings with anything that remotely resembles reality. They earned almost $600K for the year. The rest is adjustments, some of the funny money variety.

I have no way of knowing whether IVFH management is truly interested in going private via an LBO or if they just aren't capable of promoting this company. But I wlll tell you that if I was running this company, an LBO at 5x fully diluted EPS would be always in my mind. I happen to believe that this company can easily do $1 million in annual operating earnings, maybe significantly more. Why they didn't in Q4, I don't know.

Management will suck out just so much of company earnings and cash flow. Eventually, they'll want it all.